App Store pricing

Like Spotify’s complaint before it, yesterday’s “App Store Principles and Practices” document from Apple got me thinking.

Apple talks a lot about free apps not paying anything (which isn’t entirely true of course), and it’s always pitched as a feature.

But the more I think about it, the more I think it might be a bug.

This effectively means that all paid apps have to subsidise all free apps. Is this what’s preventing Apple from reducing the 30% fee?

Why should free apps get a free ride? How much value is Facebook getting from Apple? My apps don’t take your personal data and use it for advertising purposes — something that Apple seems to be in favour of — yet I have to pay 30% and Facebook pay nothing.

Of course, we have to consider unintended consequences. It would be fair for Google and Facebook to pay, but what about a game I wrote in my spare time? Or that useful utility I wrote for myself that I’m altruistically sharing?

I don’t know is the short version. Should they charge for each download? Or each App Review? They’d probably need exceptions for certain categories, but also to be very careful that the system doesn’t get gamed.

The other thing Apple doesn’t directly address is Spotify’s most compelling argument: the fact that Apple charges 30% commission for apps that provide digital services, such as streaming music or books, means that no one other than Apple can actually allow in-app purchases in those categories. Apple only allow in-app purchases with the fee yet many of these services just don’t have 30% “spare” that they can give Apple. Apple Music and Apple Books don’t have to play by the App Store rules and they don’t have to pay the 30% fee.

If anything, this is harder than than the free freeloaders problem. It doesn’t seem right that Apple couldn’t compete in these categories, yet the platform owner clearly has a huge advantage here.

Anyway, at least two issues here and no firm conclusions. They always say “bring me solutions, not problems.” Sorry, I failed.

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